While there is a number of studies on virtual customer integration, community based innovations and the use of Web 2.0 tools in large companies (see e.g. Fuller & Matzler, 2007; Piller & Walcher, 2006; von Hippel & von Krogh, 2006), the literature on how SMEs relate to communities and employ Web 2.0 tools in their everyday business routines and in product development processes in particular, is fragmented. Empirical investigation involves 6 cases (IT oriented SMEs) provided some controversial views on how SMEs regard Web 2.0 collaborative tools and information available online.

This study examines open innovation and SME internet adoption literature along with practices related to Web 2.0 and online communities adoption in larger companies. The purpose of this paper is to define how SMEs perceive risks and benefits of Web 2.0 collaborative tools for businesses. The relevance of existing forms of online communities for SMEs business activities is analysed based on proposed framework for SMEs Web 2.0 adoption behaviour.